CFD markets
CFD Markets
Explore how contracts for difference work, compare established CFD providers, understand trading costs and leverage, and research the regulatory protections available across jurisdictions.
Risk. CFDs are leveraged, complex instruments. Losses can occur rapidly, and a retail client can lose the money posted as margin. Nothing here says the product is suitable for every investor, and this is not an offer to open an account.
How a contract for difference works
A CFD is a private contract with a provider. The payoff is the change in an agreed price, times the size of the position. A long position gains when that price rises and loses when it falls. A short position does the opposite. Neither position delivers the underlying asset.
The provider is the counterparty. Its quote, its margin policy and its ability to pay are part of the contract. That is different from owning a share in a custody account, or from a futures contract cleared by an exchange.
Margin is the collateral posted so the position can be opened. Leverage is the gap between that collateral and the notional exposure. The spread is the first cost of entering and leaving. Commission appears on some instruments. Overnight financing is the cost, or occasionally the credit, of leaving the position open. Any of those can turn a small price gain into a net loss.
If losses consume the margin, the provider can close the position. That close-out is a right in the agreement. It is not a consultation. The short definition of the instrument stays in the CFD glossary entry.
A worked leverage example
Figures below are hypothetical. They are not a quote, a forecast, or a close-out price. Maintenance margin is left blank on purpose, so the illustration does not invent a liquidation level.
- Notional exposure
- 10,000.00
- Account equity
- 2,500.00
- Initial margin at 25%
- 2,500.00
- Leverage
- 4.0 times
| Path | Price move | Gross P&L | Net P&L | Equity afterwards |
|---|---|---|---|---|
| Long, price rises | +4% | 400.00 | 375.00 | 2,875.00 |
| Long, price falls | −4% | −400.00 | -425.00 | 2,075.00 |
The cash at risk in the illustration is 2,500.00. The price exposure is 10,000.00. A move of a few percent is a large share of the cash because the result is calculated on the notional. Financing and other charges may apply on top of the single 25.00 used here. A short position would flip the sign of the price move. See also the leverage guide and the margin guide.
Global CFD provider comparison
The directory holds 35 established brands from the workbook, one row each. It is not a register of every licensed firm. Product cells are region dependent. Fee cells describe a structure and are not live spreads. Select two to four names to read them side by side.
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CFD asset classes
A provider that offers one of these classes in one entity may not offer it in another. The comparison above treats a named class as jurisdiction dependent, and an unnamed class as not verified.
Forex CFDs
A currency pair quoted as bid and ask. Liquidity is deepest in the majors and thinner in exotic pairs. Retail leverage, where a cap exists, is set by the entity and the product, not by the pair’s nickname. The spread is a cost of crossing the quote.
Forex marketsIndex CFDs
Exposure to a published equity-index level. The contract specification, the dividend adjustment and the cash session all sit with the provider. The CFD does not own the index or the fund that tracks it.
Index marketsShare CFDs
A single-company price, without the share. Corporate actions such as dividends are adjusted in the contract rather than received as a shareholder. Financing usually applies overnight. The position cannot be transferred as stock.
Stock marketsCommodity CFDs
Gold, oil, natural gas and agricultural markets are often priced off a futures benchmark. Two providers can use different months or different spot conventions. Rollover from one contract to the next is a cost and a price gap, not a detail.
Commodity marketsETF CFDs
The underlying is a fund, not a promise to deliver the fund’s holdings. Tracking, the fund’s own charges and the CFD’s spread can all sit between the index story and the account result.
ETF guideCryptocurrency CFDs
Prices can move far in a short session, and several jurisdictions restrict or prohibit the product for retail clients. A provider that lists crypto CFDs somewhere in the group has not listed them for every residence.
Crypto marketsBond and rates CFDs
These reference interest-rate or government-bond prices. Contract size and duration differ by provider. Many rows in this workbook do not name the class at all. Absence from a cell is not a global ban.
Bond definitionSome rows also name options CFDs. Those are contracts on an option-like payoff with the provider. They are not the same object as a listed option cleared at an exchange. The options market page explains the listed contract.
Understanding CFD trading costs
Bid/ask spread
The gap between the price to buy and the price to sell. It can widen when the underlying market is thin or closed.
Dealing commission
A per-trade or per-share charge on some accounts, often beside a tighter spread. A zero commission line does not remove the spread.
Overnight financing
A daily charge or credit for holding the position. Weekends may count as more than one day. The rate is the provider’s, not a published central-bank rate alone.
Currency conversion
A charge when the account currency and the instrument currency differ. The currency move itself is a separate gain or loss.
Guaranteed stop premium
Where the provider offers a stop that it says will fill at the stated price, the premium is a cost. The offer is contractual. It is not a feature of every account.
Market-data fees
Some platforms charge for exchange data, especially on share CFDs. The workbook does not record a current fee for each brand.
Inactivity charges
A fee for an account left unused. A few fee cells mention that it may apply. Where the cell is silent, the charge is not verified.
Rollover and adjustments
Index and commodity CFDs can be adjusted for dividends, expiries or a roll to a later futures month. The adjustment is part of the economic result.
A worked cost stack
Assumptions, all typed rather than taken from a firm: notional 10,000.00, spread cost 12.00, commission 8.00, financing 1.50 a night for 5 nights, conversion 4.00. No slippage and no data fee.
- Spread, commission and conversion
- 24.00
- Financing
- 7.50
- Illustrative total
- 31.50
Formula: spread + commission + conversion + (financing per night × nights). Holding the position longer changes the financing line even when the price does not.
Illustrative cost calculator
Enter your own assumptions. The result is an estimate under those assumptions. It is not a live broker quote.
Illustrative total31.50
- Spread, commission and conversion
- 24.00
- Financing for the nights entered
- 7.50
Total = spread cost + commission + conversion cost + (financing per night × nights). The currency is whichever unit you typed. This is not a broker quote, and it leaves out slippage, a guaranteed-stop premium and any market-data fee.
Regulation and jurisdictions
The table is the workbook’s jurisdiction sheet, dated with the rest of the research on 20 October 2026. Leverage figures are labelled indicative in the source. They describe a retail framework where the sheet states one. They are not a schedule for every firm, and they are not professional-account terms. The workbook does not record professional classifications provider by provider. A professional election can remove retail caps. It is not a finding that the client is safer.
Regulation attaches to the legal entity. The client’s country is a separate question: whether that entity may onboard the resident, and which product it may offer them. Registration alone does not show that a CFD is suitable or that the firm is financially sound. The sheet has no Hong Kong row, so this page does not describe the SFC regime from memory.
| Location | Authority | Retail CFD view | Leverage, indicative | Protections to check | Compensation caveat | Official source |
|---|---|---|---|---|---|---|
| United Kingdom | FCA | Retail CFDs generally permitted (subject to firm permissions) | Major FX 30:1; other assets lower | Retail negative-balance protection; 50% margin close-out | FSCS subject to firm/claim eligibility; not trading losses | Regulator source |
| European Economic Area | National regulator / MiFID II / ESMA framework | Retail CFDs generally allowed, subject to local measures | Broad ESMA retail bands up to 30:1 FX | Negative balance protection; margin close-out; inducement restrictions | Local investment compensation depends on entity and scheme | Regulator source |
| Australia | ASIC | CFDs offered by appropriately licensed issuers | Retail caps generally 30:1 to 2:1 depending on asset | Negative balance protection under ASIC CFD product intervention | No universal government guarantee on trading balances | Regulator source |
| United States | CFTC / SEC / NFA | Ordinary retail OTC CFDs generally not offered | Not applicable | US regulated forex/futures are different products | Different US protections; not CFD safety equivalence | Regulator source |
| Singapore | MAS | CFD availability subject to CMS licence and suitability | Instrument and entity dependent | Specific SG rules; verify margin, client money | No presumed UK/EU compensation coverage | Regulator source |
| Switzerland | FINMA | Available through authorised dealers/banks | Depends on issuer and customer type | Entity/bank specific | Deposit protection may not cover derivative losses | Regulator source |
| South Africa | FSCA | Regulated derivatives/CFD brokers present | Entity / product dependent | Validate authorised product category and counterparty | No assumed UK/EEA scheme | Regulator source |
| United Arab Emirates | DFSA / ADGM FSRA / federal SCA | Free-zone vs federal authorisation differs | Entity / product dependent | Do not conflate arranging, custody and dealing permissions | Entity-specific | Regulator source |
| New Zealand | FMA | Derivative issuer licences may apply | Issuer / retail restrictions vary | Check licence and risk disclosures | Local laws, not EU protections | Regulator source |
| Canada | CIRO / provincial securities commissions | Access varies; not assume all standard CFDs legal nationwide | Province and firm dependent | Check authorized dealer and permitted products | CIPF coverage eligibility narrow; trading losses excluded | Regulator source |
| Japan | JFSA | Retail FX/derivatives rules and offered CFD products vary | Local retail leverage limits vary by product | Verify local Japanese licensed company | Jurisdiction-specific | Regulator source |
| SeychellesBahamasBVIBermuda | Local FSA / SCB / FSC / BMA | Offshore licences may support international offering | Often different from FCA/ASIC caps | Do not assume mandatory EU-style NBP | Compensation schemes may not exist; verify individually | Regulator source |
Choosing a CFD provider
The workbook’s due-diligence sheet is a checklist, and every result cell is still “Unknown”. WiT Markets has not marked any item passed. Work through it against the legal entity that would appear on the agreement. There is no house ranking and no preferred firm.
Critical
Legal entity
Full legal name and registration number on contract
Evidence to retain: Signed client terms; company register. Sheet result: Unknown.
Critical
Authorization
Regulator license verified for derivatives/dealing with retail
Evidence to retain: Official regulator register URL & screenshot. Sheet result: Unknown.
Critical
Country eligibility
Broker accepts tax/residence country legitimately
Evidence to retain: Region-specific eligibility/registration page. Sheet result: Unknown.
Critical
Client money
Segregated client money custody details and insolvency scenario
Evidence to retain: Client money policy / CASS or local equivalent. Sheet result: Unknown.
Critical
Negative balance protection
Confirm scope and retail vs professional classification
Evidence to retain: Contract clause on account-level losses. Sheet result: Unknown.
Critical
Product permissions
Desired FX/index/share/crypto instrument permitted for account
Evidence to retain: Live instrument specification / KID. Sheet result: Unknown.
High
Pricing total cost
Bid-ask spread, spread variability, per-side commissions, FX charges
Evidence to retain: Broker live fee schedule and timestamp. Sheet result: Unknown.
High
Overnight / swap
Daily financing formula, weekend multipliers and dividend adj.
Evidence to retain: Instrument financing page. Sheet result: Unknown.
High
Margin / liquidation
Initial and maintenance margin and close-out thresholds
Evidence to retain: Latest margin schedule. Sheet result: Unknown.
High
Deposits & withdrawals
Minimums, fees, payment routes, currency, withdrawal time
Evidence to retain: Cashier schedule. Sheet result: Unknown.
High
Execution quality
Execution policy, slippage, re-quotes, conflicts and market-making
Evidence to retain: Execution/conflicts policy; reports. Sheet result: Unknown.
High
Operational checks
Test demo, charting, order types, platform stability
Evidence to retain: Platform test log. Sheet result: Unknown.
High
Complaints / redress
Ombudsman/dispute process, compensation limits and exclusions
Evidence to retain: Official scheme eligibility, complaint policy. Sheet result: Unknown.
Medium
Financial stability
Parent financial statements, capitalization or statutory returns
Evidence to retain: Audited reports. Sheet result: Unknown.
Medium
Customer service
Hours, language, telephone and escalation responsiveness
Evidence to retain: Support test results. Sheet result: Unknown.
Medium
Scam protection
Confirm web domain, clone warnings, account bank beneficiary
Evidence to retain: Regulator warning database. Sheet result: Unknown.
Medium
Tax/reporting
Transaction statements and local tax-reporting impact
Evidence to retain: Sample statement; accountant review. Sheet result: Unknown.
CFD risks and investor protection
Leverage
A loss is calculated on the notional, then felt against the smaller cash balance.
Volatility and gaps
The market can reopen through a stop. The fill, if there is one, can be worse than the level on the ticket.
Counterparty
The provider is the other side of an OTC contract. Its quote and its solvency are both part of the position.
Forced liquidation
If margin falls through the provider’s close-out level, the firm can reduce or close the position without a fresh instruction.
Overnight funding
A position that looks unchanged on the chart can still lose money to financing.
Liquidity and pricing
The CFD quote can differ from the underlying venue, and it can widen when that venue is busy or shut.
Execution and slippage
An order can be delayed, partly filled, or filled away from the last price shown.
Account charges
Inactivity, conversion and data fees are easy to miss because they are not in the trade ticket.
Regulatory difference
The same brand can book a client to a different company, with different caps and different complaint routes.
Compensation schemes
Schemes that exist are about a failed firm and an eligible claim. They do not refund a losing trade.
If a provider becomes insolvent
What follows is conditional. It depends on which company failed, whether client money was segregated under the rules of that place, how quickly positions can be closed, and whether the client is eligible for a compensation scheme. Two customers of the same brand can have different answers if their agreements name different companies.
A scheme such as the UK FSCS, where it applies, is about an eligible claim against a failed firm. It is not insurance against a market loss, and the workbook does not treat every entity as covered by it. The compensation cell on each provider row says the scheme has to be checked. Ordinary trading losses remain with the client.
Frequently asked questions
What is a CFD?
A contract for difference pays the change in an underlying price between opening and closing, multiplied by the size of the contract. It is a derivative with the provider. It is not a share, a fund unit, or a warehouse receipt.
Do CFD traders own the underlying asset?
No. The contract references a price. It does not put the share, currency, commodity or fund into the client’s name, and it cannot be transferred to another broker as that asset.
How does CFD leverage work?
The cash posted as margin is smaller than the notional exposure. A move in the underlying price is applied to the notional, so the result is larger relative to the cash. The multiple depends on the legal entity, the client category and the instrument. A retail cap in one country is not a worldwide rule.
What is margin?
Margin is collateral the provider requires against the position. Initial margin opens it. Further margin, or a close-out, can follow if the price moves against the position. Margin is not a fee, and it is not a promise that the loss will stop at that amount.
How do CFDs differ from spread betting?
Both can reference the same price and both are contracts with a firm. Spread betting is a distinct product offered in some places, including the United Kingdom, with its own tax treatment. A CFD account and a spread-bet account are not interchangeable, and neither is offered in every country.
Can you lose more than your deposit?
It depends on the contracting entity, the client classification and whether a negative-balance rule applies to that account. Where it does not, a gap can leave a deficit. Where it does, losses can still consume the money in the account. A compensation scheme does not repay ordinary trading losses.
Are CFDs legal in my country?
There is no single answer. The United States generally does not offer ordinary retail OTC CFDs. Other countries allow them through licensed firms, sometimes with retail leverage caps, and some restrict particular underlyings such as crypto. The client’s residence and the firm’s legal entity both matter.
How are CFD brokers regulated?
A group can hold several licences. The licence that matters is the one attached to the entity in the client agreement, for the service being provided. A logo that mentions the FCA, ASIC, CySEC or another supervisor does not by itself say which entity would hold the account, or that every product is permitted locally.
What fees do CFD brokers charge?
The usual stack is the bid-ask spread, a commission on some instruments, overnight financing, and sometimes a currency-conversion charge, a market-data fee, a guaranteed-stop premium or an inactivity charge. The workbook records descriptive structures, not live quotes. The schedule for the account is the one that applies.
What is overnight financing?
A charge or credit for keeping a leveraged position open past the provider’s rollover time. It is often related to an interest-rate differential and the provider’s own markup. Weekends and holidays can count as more than one night. It is separate from the spread.
Can CFD providers change their prices?
Yes. On an OTC contract the provider quotes the bid and ask. Those quotes can widen, pause or gap, especially around news, the open and the close. A price on a marketing page is not a standing offer.
What happens if my CFD broker fails?
Outcomes depend on which company failed, how client money was held, the insolvency law of that place, and whether a compensation scheme covers that client and that claim. Trading losses are generally outside those schemes. Clients of two brands, or of two entities inside one brand, are not in the same position by default.
Are cryptocurrency CFDs available everywhere?
No. The workbook marks crypto CFDs as eligible, restricted or simply unnamed, depending on the row. Several firms say availability follows the territory. An unnamed cell is not proof the product is forbidden, and a named cell is not proof it is offered in every country.
How can I compare CFD providers fairly?
Compare the contracting entity, the supervisor of that entity, the instruments actually offered on that account, the full cost stack, margin and close-out rules, and the client-money wording. This directory sorts names alphabetically. It does not assign a score.
Are CFDs suitable for long-term investing?
They are built for price exposure, usually with leverage and a financing charge that accrues while the position is open. Holding one for months is a different proposition from holding a share or a fund. Suitability is personal, and this page does not decide it.
Research methodology
This comparison covers 35 CFD brands. It is not a list of every licensed firm. Each row is one brand. A parent group can own more than one brand, and a licence belongs to a specific company, not automatically to every name in the group. The descriptions were reviewed on 20 October 2026.
A market is shown for a brand only where the sources name it. Otherwise the row says not verified. That is not a finding that the product is unavailable. A regulator named on a row is a supervisor mentioned in those sources. It is not a licence number, and it does not show that the firm may open an account for every resident.
Two labels sit beside the research status. Source-backed means the published pages support the main facts. Needs further verification means they do not yet. The status itself is read the same way. Primary confirmed means the disclosures support the headline. Primary partial means only some of the group facts are supported. Eligibility reconfirm means whether a resident can be onboarded still has to be checked with the firm. Review required means the row should be read against the provider’s current pages before it is relied on. Primary confirmed for Seychelles is limited to that licensing claim. None of these words is a score, a ranking, or a recommendation.
Cost text describes the shape of the charge: spread, commission, financing and similar items. It is not a live quote. Those charges change by instrument and by company. Whether an account can be opened, and which protections apply, depends on the company named in the agreement.
WiT Markets does not give these brands a safety rating. The order of the table is not a preference. A commercial relationship is not why a brand is included, and it is not why another is absent. Before any money is sent, confirm the contracting company, whether that company may offer the CFD where you live, the protections that apply to that company, and the current costs. Send a correction through the corrections page. How sources are handled is set out on the methodology page.
Sources
| Source | Subject | What the page covers | Link |
|---|---|---|---|
| Regulator | UK retail CFDs | FCA policy on permitted leverage and negative-balance protection | Open source |
| Regulator | UK policy statement | FCA retail restrictions | Open source |
| Provider | IG | Detailed group regulation | Open source |
| Provider | Saxo | CFD catalog & margin details | Open source |
| Provider | Plus500 | Licensed subsidiaries | Open source |
| Provider | eToro | Regulated entities and license numbers | Open source |
| Provider | OANDA | US regulatory disclosures and non-US CFD exclusion | Open source |
| Provider | XTB | Group and customer onboarding jurisdictions | Open source |
| Provider | FOREX.com | StoneX entities and licenses | Open source |
| Provider | AvaTrade | Group regulations and license numbers | Open source |
| Provider | FP Markets | Regulatory footprint | Open source |
| Provider | Tickmill | Group regulatory disclosures | Open source |
| Provider | Eightcap | Group regulators and legal docs | Open source |
| Provider | Capital.com | Regulated entities | Open source |
| Provider | FxPro | Group licences | Open source |
